Marc Sellouk, President and CEO of Flewber
Marc Sellouk, the president and CEO of Flewber, an air taxi service designed to be accessible to everyone. Flewber is a combination of Marc's passion for aviation and two decades of experience founding and leading a business. As the leader of his telecom company Transbeam, Marc spent countless hours shuffling through airport security for quick flights to meetings in nearby cities, only to go through the gamut once again on a same-day return trip. The experience led him to create an alternative. Flewber circumvents the inconvenience of airport travel by offering passengers an affordable door-to-door air taxi service.
Flewber is not Marc's first rodeo. He founded Transbeam, https://www.gtt.net as a 20-year-old college student and then set to work growing the company. Initially, Marc operated Transbeam as a one-man show, navigating FCC regulations and serving as the sole customer service representative. Over the next two decades, the company grew by leaps and bounds, ultimately evolving into a multi-million dollar organization. Now, at age 42, Marc is leveraging his experience and the successful sale of Transbeam to self-fund the launch of Flewber.
AUTOMATED EPISODE TRANSCRIPT
[00:00:01] You're listening to Scaling Up Services where we speak with entrepreneurs authors business experts and thought leaders to give you the knowledge and insights you need to scale your service based business faster and easier. And now here is your host Business Coach Bruce Eckfeldt.
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[00:00:58] Welcome everyone this is Scaling up Services. I'm Bruce Eckfeldt. I'm your host and our guest today is Marc Sellouk and he is president and CEO of Flewber which is an air taxi service. We're gonna find out more about his background as an entrepreneur and about the business and where they are in terms of creating new flight services for people not just elite passengers but everyone else all of us all of us people who are not doing private jets right now with that Mark welcome to the program. Thank you Bruce. Glad to be here. So you're a fascinating business. I'm curious and I'm fascinated to kind of figure out how the operations and stuff work and hear about how you've set up this new business model but why don't we start with a little bit more about you and your background and your entrepreneurial journey and how you kind of got to Flewber what was what was the backstory. Tell us more.
[00:01:43] Well so I my career started about 20 years ago in technology and I decided in 1996 when Congress deregulated the whole telecom market the Telecom Act of 96 they introduced competitive local what they call competitive local exchange carriers to open up competition against the back then New York Telephone Bell Atlantic City. So I was one of the first to jump on that bandwagon and became what is really a public utility in several states across the country. And as a result we became a what they call today a managed service provider that provides voice and data solutions to businesses. And we went ahead and built out the network in over 20 years. We've we've built some real strong sophistication into that network and became one of the predominant providers of voice and data services to small and medium sized and in many cases large businesses.
[00:02:40] And so over over my career I've built a very interesting operation that had many different facets to it from a largest logistical perspective.
[00:02:52] And you know we had a great team which is which is a very important factor in building any business.
[00:02:58] And that's brought me to fast forward 20 years being able to exit and sell off the company I built to a publicly held a two billion dollar publicly held company. Yep. Thank you. Thank you.
[00:03:12] Very exciting very very educational.
[00:03:16] I'm sure. Really a whole another episode we could do on that exit through the ups and downs you learn a lot of business.
[00:03:24] You learn a lot. On the personal side and on the people side and on the business side and so you know I've always had a passion for aviation.
[00:03:32] And you know as a pilot my passion was really you know really for the hobby itself.
[00:03:38] But then I knew when I exited I wanted to do something that relates to my passion something that would excite me waking up and wanting we all want to wake up and go do know go to work and do something that we love.
[00:03:49] And so to me that the challenge was how do I know how do I use my visionary skills to build a business that sexy that makes sense and that has a need in the marketplace. And so you know I I actually you know I spent time meeting with the FCC and flying off non-stop regional flights New York Boston New York D.C. by way of example.
[00:04:15] And I found that there was really no alternative to commercial aviation and for an 11:00 meeting ice to have to 11:00 morning meeting face to have to wake up at 5:00 in the morning get to the airport at eight o'clock flight two hours in advance and go through all the absurdity and the nonsense that all very used to end by quite frankly frustrated with.
[00:04:35] And there was really no alternative outside of flying.
[00:04:39] The cost prohibitive quote unquote private jet type you know type arrangement.
[00:04:43] And so I build a parallel to a ride sharing service like Uber and Lyft civil world and you see when you go back 10 years ago when you used to walk the streets of Manhattan used to see these black cars lined up to pick up you know executives and sea level type personnel.
[00:05:01] And it was really catering to the upper echelon of the marketplace. So you have these ridesharing companies that came in and said Hey we're gonna make it stylish we're gonna make. We're going to build an app to make it really easy and we're going to make it affordable for everyone. Why does it have to be just for the C-level guys or for you know for wealthy people why can't. Everyone and I build a parallel to this industry because as I said there's no alternative to the commercial flying commercial today. You know outside of you know some of these other companies that pick you up and Bentley and Rolls Royces and bring you these fancy aircrafts. And so I said to myself there's got to be a similar model here. Like the ride sharing apps that we can really make it for everyone. And so after my exit I did a lot of research and I found that there was a way to really build something different and really as I said I build a parallel to it because I use the same model build an app make it economical and stylish and without the frustration and so Flewber was born. And basically what it is is our objective is to through an app have a consumer download it book a flight within under a minute and on demand. So a day a day for two hours before or month before and be able to have a car pick you up from your from your origination bring it to the field and at 15 minutes before the flight bottom and you get a newspaper a lot. Hey Sam I mean Ms. Get on an aircraft and be at your destination within 45 minutes.
[00:06:34] And are these these are so low that I'm the only passenger or you can pick up multiple passengers or how do you deal with the capacity.
[00:06:41] So they're scheduled flights. So we have you know as a broker so Flewber is our broker. And we have an exclusive air operator. OK I'll talk a little more about that. You know logistically putting this whole business together we now think only because you can't just you know buy an aircraft and Ireland and just say hey fly these folks that's what they think.
[00:07:01] There are actually licenses associated with it. And to get into the business you can't just apply for a license it takes many years and their skill sets that are required. So the next best thing for me was to buy company. And that's exactly what I did. I bought a company that was already in existence and then had the crafts and I kind of marry the broker and the operator together and said hey we can make this work and create an alternative to airlines and make it less frustrating and you know we actually that's what we're going to be doing.
[00:07:28] And so our price point now there are no annual fees or price points are going to be 600 miles round so it's seven hundred dollars but you get an instant hundred dollar rebate if you built your terrestrial travel to the airport with us through our app. And so it's 600 miles round trip and all of our scheduled markets will be launching with New York Boston New York Atlantic City and immediately deploying to Philly and D.C. within this region. And our two year plan basically is to take that model and replicate it. We want to build like a cookie cutter model and replicated in different parts of the country specifically Florida Texas California Washington State and Illinois is where we plan on on expanding to.
[00:08:07] Yeah. Where were you a couple of years ago because I had I had an office in Boston and I was there every other week either on the train or on I tried to fly commercial aircraft. So unfortunately you're about six years too late for that. Yeah I totally get it.
[00:08:22] I'll tell you I was I was at the airport taking off my belt and dropping my pants.
[00:08:27] I was on the line next to you first now but where you know it's it's it's it's a neat idea that the business model works out very well. I actually I'm funding the company and for me I had to you know as an investor and as the operator I had to prove to myself that it actually was viable. And so not only that I have to build a model but I also had to make sure that it made sense. And so you know look it's it's a breath of fresh air in this industry it's a sexy model you know a lot of people are looking for this alternative but they're looking for it in a reasonable way where they don't have to spend thousands and thousands of dollars to get on a private aircraft and get to where you need to be and we make that comfortable.
[00:09:09] We give that business class type scenario to really everyone. So there are 15000 people a day from the tristate area that that travel to regional cities like Boston and D.C. And you know why can't it be for them and that's exactly where we want to go with this.
[00:09:24] We want to make it for every now and then that market has been so polarized I mean either either you're the you know you're going off to marine terminal at LGA to catch the shuttle the Delta shuttle or something or your you know thousands of dollars for you know a private jet. I mean even some of these other private service and you're not jets and things like that they're still there I mean they're they're not cheap. All right so yeah it seems like there's been this big gap in the middle of the market that you're trying to hit.
[00:09:52] I'm curious what a couple questions One how much do you feel like your experience in dealing with the FCC on the on the telephone side on the broadcast side you know how much how much experience or knowledge or familiarity from that were you able to transfer in terms of dealing with the FAA. You know another three letter acronym government agency in terms of dealing with regulation and navigating those things I mean it did the experience you had before set you up to be able to. Handle it better or navigate that you know better or faster.
[00:10:23] From an organizational perspective it did but the FAA is a completely different animal from the FCC. Yeah.
[00:10:30] A wise man once told me that and they showed me actually some of the rules and guidelines that are written in some of the regulations under the FAA and he asked me what color the ink was and I'm looking at that piece of paper and I said it's black and he says well look closer.
[00:10:45] What color is the ink. I said Well it's black and goes No it's red. Everything written in these regulations are written in blood. And so you know I don't mean to be I don't mean to dramatize it here but it's. They mean business and everything that they do is is serious.
[00:11:01] And know we take it very seriously and so part of the challenge is you know even though I come from from a strong business background and I've had a little bit of success they don't just you know the FAA just doesn't allow someone to come in and say hey you've got a good business background we're going to allow you to operate a charter company that I acquired actually had the skill set within the organization and so I know that that basically transferred over in the acquisition and those folks remain.
[00:11:28] So all these skill sets that are required whether it's a Director of Operations who's responsible for all of the rules sets under those the FAA guidelines or director of maintenance who's responsible for the mechanical and then you have your chief pilot who's responsible for the whole flight operations part of managers who are responsible for logistical flights as they happen.
[00:11:51] So all of these you know all these folks and all these skill sets we you know we've basically inherited from the acquisition part of building a venture or a partnership between the broker and the operator which is essentially owned by the same company at this point. It still means two independent companies. So from a business perspective having haven't work operationally and building a system and a platform so that you don't swivel chair between systems. That's where the skill set and the other side of the and the other side of the business house plays a factor.
[00:12:23] And so you know having them having for example you know it's one thing to build an app with a consumer facing product. It's another thing to have the back end of the app be able to scale enough to to support all the logistical things that happen from an operational perspective. And that's where my you know my CIO comes in my former operations people that have followed me into this venture. That's right that helps.
[00:12:48] You know we've kind of seen this movie before coming from the regulated utility. You know we're going from one as you said we're going from one acronym out to another but the skill set and the organizational knowhow is essentially the same and so we've got to be very organized very meticulous very methodical. And you know it's it's keeping it together and pulling the trigger to make sure that you scale properly and you operate properly.
[00:13:12] I'm curious just because you have you had a successful exit and now you're looking at a new business or working on a new venture what what are their learnings or insights or things have you consciously decided to do differently or do the same in terms of these two businesses. I guess how transferable has your knowledge or experience been between the two between the two efforts.
[00:13:34] Well I realized that in the aviation industry people are very temperamental obviously because of the type of pressure that everyone's under to follow these regulations.
[00:13:44] And so having dealt with people in the past and understanding emotions and feelings and pressure I think that played a big factor.
[00:13:52] I could tell you definitively that it played a big factor in getting this this whole organization together and this whole sort of you know how does one department communicate with another department without stepping on their toes. So it's this experience from that perspective has helped out a lot.
[00:14:08] And believe me when I tell you there are a lot of moving pieces here. It's very very challenging.
[00:14:13] Yeah yeah I know for our audience. You were actually in your hangar now you're in the office but you're in the hangar onsite. I mean I guess how much did you expect to that this new venture would be really hands on and actually with the aircraft in you know working from a hangar.
[00:14:32] I mean I guess what was your vision when you originally kind of ventured on this and how has it been the same or different from how things are playing out for you.
[00:14:38] Well for me it's a dream. I mean I love aircraft. I love flying and so having an office in the hangar actually worked out for me I guess my view you know some people lack water views. Some people like city views love their craft these. Yeah. So for me it worked out very well. And you know initially it wasn't it wasn't intentional but that the office was was available and I decided hey why not.
[00:15:01] And so we've know our aircrafts are actually going to be parked right outside our office which is also a an added benefit.
[00:15:08] So you are funding this yourself. How does that factor into things or how does that change the dynamics. And I guess what was that a conscious decision for you in terms of doing this yourself versus raising. Many tell us a little bit more about that because I think that's an interesting dynamic for a company when it's funded by a key entrepreneur.
[00:15:27] Right. So you know through my experience I learned that proving out the model first and retaining as much equity as possible ultimately works out much better in the long run. And because I had the capability to do it I thought it made sense to first build have the building blocks in place you know sort of build the foundation and then capture revenue and then ultimately there's no question that we're going to have to raise revenue but that you know once once the platform is there and the foundation is built there is a lot more value to it.
[00:15:58] And because I was basically at the right place at the right time and enjoy rolling up my sleeves because that's the type of guy that I am I I like you know if I move into an office I want to put the desks together myself and I'll also have meetings with the bankers that I need to get to know you know what.
[00:16:13] Whatever whatever we need to get rolling we'll get rolling. So I. That includes rolling up my sleeves.
[00:16:18] Yeah. And I think that's an interesting situation. I've talked to a few different entrepreneurs who you know have had good access. They've got you know significant capital that can deploy into a new venture and kind of that decision to sell finance for a kind of a longer period of time than maybe other companies would or would be able to. It's interesting I mean because it does keep you very focused on the business. I think a lot of folks get so wrapped up in and consumed with raising capital early in our business but it's tough. You know that of our struggle with that.
[00:16:49] And that's what happens. You know once you raise capital you have a fiduciary responsibility to the investors. And so oftentimes that could take away some of your focus on a day to day business and where my focus needs to be right now is executing on this plan.
[00:17:03] We have a business plan. We have a model and we have to execute and every step of the way that execution especially in this sector which is you know every step you take is critical. It's got to be precision at its best. And so that's that's where I am right now and that you know for me to go out and raise money is not too complicated.
[00:17:20] I have I have the ability to do that I have my previous year I have a good a pretty good following so I might have my focus needs to be right now in executing this plan right as opposed to having quarterly meeting with investors and sort of getting some guidelines from them as to how to operate and how to pivot.
[00:17:39] So again if you have the ability to do that it's it's preferable but oftentimes you'll find that you know especially in a cash intensive business like this this business sometimes can be but at some point we will be there and we'll go out and raise money. But it's got to be at the right place at the right time.
[00:17:56] Yeah well it sounds like I mean certainly if you can push the raise and toll later later in the proving of the model you know it just means that your valuation is going to be much better you're going to have to give up less equity as part of that raise. Where do you think like when Windows win does that really happen for you as I say at a scaling point like once you prove the business model and you're focused on scaling the business like going to new geographies expanding your number of aircraft you have. What's the what's the trigger for you in terms of the next stage of capitalization.
[00:18:24] So we need to prove that we can operate. We need to prove that we can get revenue and we need to prove that we're profitable and then we need to prove that we can expand and replicate that model. I think once we achieve those four parameters we'll be in a very strong position to command a better evaluation. And so once once you've done something and you have a track record behind you from the actual operation itself not just from your previous careers or previous ventures. Once I achieve what we achieve as a company those four parameters I think that's all. And I think we'll be there within a year. Yeah.
[00:18:59] Well good. And tell us about how kind of things have developed like anything. Anything interesting that you've learned as you've kind of built the official model and you've kind of gone to put pieces in place. You know you did the acquisition. What are some of your takeaways or learnings in terms of going through this process. Having been through it before as an entrepreneur but now in this model water what are some of the insights you've developed if you think it's going to take a certain amount of time.
[00:19:22] It's just like building a house. Double it. Oh absolutely. But did this budget double time. Yeah.
[00:19:30] You look at it takes it takes a lot of time it takes a lot of effort.
[00:19:33] You know it's a government agency the FAA is the government agency and it's it's it's bureaucratic like anything else and there's there are processes and they take a lot of time and rightfully so. And I actually I actually enjoyed a challenge and I I appreciate the fact that it takes this much time because you know when people board an aircraft they know that they're going to feel safe and they feel comfortable. So it's you know my takeaways are from what I've experienced so far as you know you have to be very organized you have to be you have to prepare to execute and you really have to be prepared for delays.
[00:20:06] And while I did prepare for delays you know we did have obviously you know we were supposed to launch a bit earlier but you know we're we're not under the gun here so we're not we're not in a rush to do anything and what we want to do it right.
[00:20:18] Yeah well. It's literally dealing with a business that has this you know safety life safety component to it. The whole kind of risk calculation becomes quite different. You know it's not like building an app and delivering food and you know something goes wrong someone doesn't get their pizza in time. You know it's a very different kind of risk model and a risk risk contacts that you're dealing with how it goes. How do you deal with that. Or I guess how does that affect things you know going from you know kind of telephony and information services or connectivity services you know where I mean you know that it's a big deal and business operations could be dramatically affected by loss of connectivity and stuff versus you know aircraft and life safety issues I guess. Tell me a little bit about the difference how you've kind of adjusted to this new world.
[00:21:06] Right. So as I said there are two entities here. One is the entity which is the operator that I acquired and the other is the broker which is Flewber. And even though they are owned by the same company there are two independent companies. So the operators actually you know has a has a work force specifically got it for the operator for operating the flights themselves. So the skill set so the FAA actually regulates that company as opposed to the broker. So the skill set that was there the pilots that were there are the operators that were there that try to manage that were there. They remain with they think they've been operating for 10 plus years in fact. And collectively they have over 70 years of experience in that in the charter business.
[00:21:48] And how do you separate it to your organizationally of separated them. I guess if you physically separated them culturally separated them like how do you how do you make sure that you don't in fact one organization with the other only keep one organization you know kind of driving and iterative and let's develop new applications and drive the technology versus the other one is look Look we're running a flight services an aircraft company that needs certain a certain culture even that's different from from.
[00:22:15] They are two separate companies they operate independently. And even though they're in the same office the culture is the culture that's top down. And you know being organized and then having things done in the right way that's you know that's again top down.
[00:22:29] But I mean they're physically separate companies and have separate responsibilities for example Flewber is running the development of the app and coming up with the schedules and coming up with all the marketing and and the management of the actual you know launch of the end of the service itself. The charter operators specifically manages the mechanical safety and chartering flights flight to the actual operating the actual flights so that the folks that are within that organization actually conform to the. All these different safety and security requirements that are mandated.
[00:23:07] You know there are manuals that are what we call operational specs.
[00:23:12] There are manuals and manuals that are that are specific to the operator itself that are very tedious in terms of what they've been through to get those manuals together I'm sure.
[00:23:22] And so you know it's very similar to an airline just because it's an air taxi company. So there are three types of licenses in this business. There's a 120 one which is your typical airline your ninety one which is your Net Jets type company where you have a fractional ownership in the plane and then there's a one thirty five which is an on demand they're taxing at 135 and the 121 are the most rigid in terms of regulations and safety and mechanical requirements. So we fall under that spec and so when you get on JetBlue flight it's pretty much the same requirements for getting on a chartered flight the platform.
[00:23:58] So let's geek out on the on the aircraft a little bit. So what are you to tell us about the aircraft why you've chosen the planes that you have.
[00:24:06] Tell us a little bit about that process.
[00:24:07] So the actual aircrafts that we inherited from the acquisition are we. We've kept there really nice aircraft the Cadillacs of the aviation industry and they see six on the passenger side but with two crews all of our aircrafts are flown by the pilot captain and first officer and then we have our jets which are a plus two. So we have a combination of props and jets our jets are a little bigger. They they they fly a plane eight passengers plus two crew both are same configuration inside same type of come for our jets are a little faster than a prop obviously you know off our missions are now we're in under and they all have a business type a business class type environment so you know club seating tables and just a nice a nice level of comfort.
[00:25:00] Walk us through the experience I have if I may. If I purchase a flight how does the experience work for a customer.
[00:25:05] So it's really simple it's almost. I wanted to make it almost like a ride sharing app you download the app you sign up takes under a minute a couple icons come up you book a flight choose your origination setting your destination. City schedule flights pop up. Select your flights.
[00:25:24] Determine whether you want to take the rebate for booking gear your ground travel through the app.
[00:25:29] Once you do that and you do select that you get an instant rebate you check out enter your credit card and boom you're booked now.
[00:25:37] Yes it. Walk me through the experience of actually taking the flight.
[00:25:39] Right. So once you're getting a booking. Depending on the timing you get an alert notification on your on your app on your phone that tells you that the time has come for you to book your your right your ground transportation all through our app seamless. You go ahead into the ride sharing portion of the end of the process and you took your car carpets you up an hour before the flight gets you to the field or to the airport 15 minutes prior to departure.
[00:26:08] Once you arrive at the field you go through a small security protocol that we have in place here. You have a newspaper a lot a couple stacks board the plane and within 45 minutes you're at your destination disembark and get your ride out to wherever you're you're meeting is or you're at your ultimate destination. And then on the way back you have a car again to our app that brings you back to the field up on the pole on your back home.
[00:26:36] Then 15 minutes before really sounds too good to be true.
[00:26:41] It's actually it's unbelievable it's that that's the whole premise of our plan here I think. I think it's going to allow for people to have a different perspective and how to travel from aviation and how to travel in general with airlines and airplanes. So you know I think I think it's a breath of fresh air. I think it's something different than I think it's something that the rest of us folks are going to want to you know hop on the bandwagon.
[00:27:09] So you mentioned the security.
[00:27:12] And by the way we have a couple of different things on the horizon and I just want to mention one mention in here since we have. I'm assuming we have a great audience here but we have different unique products that are coming out. We have what's called a flu works product. I'm sure you're familiar with a company called we work. So our flu works product is basically going to be able to take advantage of conference rooms we have the flight businesses offices at the airport where our departures and in our actual departures happen.
[00:27:39] So you'll be able to think that that's spaces we have there and then we also have our flu Bill luxe product which is going to be more of like a premium type.
[00:27:48] Right. And that's those will be longer distances and more on type services. So these are things that are on the horizon as we expand and we're excited about it.
[00:27:59] And you mentioned security and it's like how do you deal with the security issues because obviously you know an airline the whole air travel thing has been so impacted by security concerns. How do you address it in this in this model.
[00:28:10] I can't tell you. It's all secret.
[00:28:14] Well that's the point right. Yes exactly. But there is there it's there to take care of security. You take security very seriously.
[00:28:22] Once a passenger against the airport you know where we're big on certain things that you know for example we profile definitely we do things similar to our laws approach to security.
[00:28:35] And so we have you know we have our own security protocols in place here that are that are rigorous and that and that are different.
[00:28:43] Yeah good good. I think we needed a new approach to security airline Air Traffic Security.
[00:28:49] You know it seemed at such a time you don't you mean you don't feel comfortable with the guy asking you to take off your shoes. Yeah we'll see. That's that's a whole industry that's ripe for disruption. So hopefully you're the beginning of this.
[00:29:01] So tell us a little bit about your look your day to day. I mean you're you're an excellent entrepreneur. So you know you're you're in the throes of a new venture. How do you how do you kind of keep things balanced. How do you keep things fine. How do you know. How do you manage yourself as you're kind of going back into the thick of starting a new company.
[00:29:18] I do. I'm doing what I love. I can't wait to wake up in the morning and get out of bed and go to work. I have a hard time leaving the office because I love what I do so much. But family is also very important. And so you know I make a lot of time for my kids for my family which I think is you know is important.
[00:29:37] And then that's that's a message that I've always kept in all my organizations that family families always first. Yeah but you know I love what I do I love waking up in the morning and then you know having gone to the airport in the wee hours of the morning. It's it's a great great place for me to be because I love it so much but you know that the work that revolves around it it drives me to perfection.
[00:29:59] And so you know I think those are I think that's what everyone's goal should be to strive for so yeah.
[00:30:05] Now I think it's always you know I think being highly engaged and you know in everything that you do both business and family I think is ultimately the goal of this stuff and that keeps people you know keeps people balance keep people's energy levels high keep the productivity high. So. Good for you Mark. If people want to find out more about Flipper and the other services and the work that you're doing. What's the best way to get that information.
[00:30:26] Well you can follow us on social media at Flewber on Facebook at flipper on Instagram.
[00:30:32] And that fly flew around Twitter and that flew around LinkedIn and our website is www.youtube.com and within the next couple of weeks folks will be able to download our app and we look forward to a successful trip on this awesome.
[00:30:45] I'll make sure that all those links and handles are in the show not here so people can click through. I am looking forward to it. I'm in Boston D.C. on a fairly regular basis so as soon as you're released let me know and I will take a flight and I will I'll report on it.
[00:31:01] I'll do that. Thank you so much for having me. This is great. Thank you for the time. Thank you.
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